Scotts Miracle-Gro Company (SMG)
Net profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -380,100 | -437,500 | 512,500 | 387,400 | 460,700 |
| Revenue | US$ in thousands | 3,371,900 | 3,804,700 | 4,835,700 | 4,051,100 | 3,315,200 |
| Net profit margin | -11.27% | -11.50% | 10.60% | 9.56% | 13.90% |
September 30, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $-380,100K ÷ $3,371,900K
= -11.27%
The net profit margin of Scotts Miracle-Gro Company has experienced a downward trend over the past five years. In the most recent fiscal year ending on September 30, 2023, the net profit margin stood at -10.70%, indicating that the company experienced a net loss in relation to its revenue. This represents a decline from the previous year's net profit margin of -11.15%.
The negative net profit margin suggests that the company's expenses, including operating costs and possibly one-time charges, exceeded its revenue for the fiscal year. This could be a cause for concern, as it indicates a potential challenge in generating profits from its primary business activities.
When comparing to the more profitable years, such as 2019 and 2020, where the net profit margin stood at 14.60% and 9.38% respectively, the recent performance reflects a substantial decrease. This decline may raise questions about the company's ability to effectively manage its costs and expenses in relation to its revenue, warranting further investigation into the underlying factors contributing to the negative net profit margin.
Peer comparison
Sep 30, 2023